Market maker sues lawyer over $ 4 million over BTC transaction

Market making and OTC trading company GSR Markets is taking legal action against attorney Diana McDonald, who is accused of pledging $ 2 million from a $ 4 million BTC transaction in which she has acted as a trustee.

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GSR Markets sued attorney for missing $ 2 million

GSR Markets, a Hong Kong-based company, is taking legal action against a lawyer to act as trustee on a $ 4 million BTC escrow transaction that has not been purchased. According to the plaintiffs, GSR sent them BTC in return for $ 4 million sent to the trust account of a lawyer who had acted as a trustee, only to return $ 2 million to them and receive no cryptocurrency.

GSR claims, "Valkyrie [one of the defendants] promised to provide Bitcoin for GSR markets]in exchange for 4 million dollars. In light of this pledge, GSR Markets transferred $ 4 million to the defendant.

GSR claims to have acted as an agent for Alivia Corporation in filing for the transactions, alleging that the plaintiff had paid $ 4,000,000 on January 3, 2019 and expects it to receive 1,000 immediately [BTC] from the sellers. Based on this expectation, GSR Markets has narrowed those 1,000 [BTC], based on a purchase price of $ 3,635 per [BTC], "

Lawyer does not claim misconduct

GSR claims that it has not received BTC and is currently owed $ 2 million. In addition, the GSR had lost in the course of the resolution of their short position around $ 380,000.

The plaintiff is seeking an injunction and accuses McDonald and McDonald Law of violating trusteeship and fraud. GSR is also suing Wells Fargo, the bank providing the account on which the money was deposited to "promote and support fraud".

McDonald responded to the allegation, claiming that it was not abusive and that its fiduciary duty in the transaction was with the seller and not the buyer. McDonald assured that part of the funds were used to "unlock" a BTC purse and the plaintiff "delivered 2,000 non-cash" [BTC], "

How are you responding to the lawsuit between GSR Markets and McDonald? Share your thoughts in the comments below!

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